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Person-to-Person funds transfers are not a
new phenomenon. The ability to transfer funds from one person
to another is a fundamental feature of most retail banks' services
and one that most retail bank customers have come to expect.
Traditionally, retail banks have supported a variety of funds
transfer methods - checks and bank-to-bank transfers are just
a few examples.
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Whilst there is no argument against
the fact that these methods work, it is fair to say that these
methods are not quick to clear nor are they cheap for banks to
process.
Inefficiency increases tenfold for cross-border
payments as these types of transfers are not only expensive
and cumbersome for retail banks to process but costly and
slow for customers to undertake.
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The latter in particular is high on the agenda
of most European retail banks due to the European Commission's
recently introduced regulation on cross-border credit payments
in Euros.
The regulation
mandates that all Member State banks charge equally for domestic
and cross-border payments. As a result, the time for introducing new, more cost-effective
methods for transferring funds has never been better.
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